Tennessee Valley Public Power Assoc Inc

“Tvppa is organized as a nonprofit mutual benefit corporation with members.”

“The members of tvppa elect the members of the board.”

“According to the tvppa bylaws, approval is required by the members for certain decisions.”

“A draft copy of the form 990 was provided to members of management for review. After management review and approval for filing, a copy of the finalized form 990 was mailed to each member of the board before the return was filed with the irs. The members of the board were invited to contact tvppa managment with comments or questions pertaining to the form 990.”

“Tvppa's ethics and conflict of interest policy is reviewed at least annually with members of the tvppa board of directors, officers and key persons, all of whom are required to update no less than annually their conflict of interest disclosure statements. Tvppa's general counsel reviews the policy and its implications annualy with directors, officers, and key persons. There is a process for consultation and decisions for interpreting application of the policy to specific or hypothetical circumstances.”

“The process used was that comparable data was presented by the board chairman to the exectutive committee which reviews and establishes the ceo's compensation. Also, within the knowledge of tvppa exectutive committee members was information of which they were already aware regarding compensation paid to the ceos of municipal or cooperative state-wide organizations in which their systems were members and on whose governing boards or committees they serve which makes available compensation arrangements with their ceo. The compensation of all other employees of tvppa is established by the ceo based upon association industry prevailing salaries and benefits, prevailing area and regional market salaries, and other information deemed relevant by the ceo, and subject to overall budget approval by the tvppa board of directors. The board has placed a written compensation plan in effect for annual independent reviews of exectutive compensation.”

“Form 990 is open to public inspection upon request.”

“Tvppa's charter and certain reports are available for public inspection in the office of the tennessee secretary of state. The organization's conflict of interest policy and financial statements are not made available to the public because federal tax law does not require such documents to be made publicly available.”

“Other professional service fees 3,550,231.”

“In june 2025, the association received notice from the united states department of justice ("doj") of an investigation into a potential violation of the false claims act related to the association's eligibility to receive its first payroll protection program ("ppp") loan. The coronavirus aid, relief, and economic security act ("cares act"), which was signed into law on march 25, 2020, provided certain nonprofit organizations, which met certain requirements, eligibility for ppp loans. The cares act defined nonprofit organizations as organizations described in section 501(c)(3) of the irc and organizations that are exempt from taxation under section 501(a) of the irc. Under the cares act, section 501(c)(6) organizations were not originally eligible for ppp loans. The economic aid act, which was signed into law on december 27, 2020, made certain 501(c)(6) organizations eligible for ppp loans. In accordance with gaap, ppp loans are treated as conditional grants and forgiveness of the ppp loans should be recognized as income once all conditions are met. The association received its first ppp loan in april 2020, which was before 501(c)(6) organizations were eligible for ppp loans. As such, the association did not meet the eligibility requirements for its first ppp loan. Since the association was not eligible for its first ppp loan, it would not have been eligible to receive a second draw ppp loan and therefore the conditions for the second draw ppp loan were also not met. During the year ended december 31, 2021, the association recognized forgiveness income of $570,105 related to its first ppp loan. During the year ended december 31, 2022, the association recognized forgiveness income of $521,053 related to its second ppp loan. The line 8 prior period adjustment on the reconciliation of nets assets is comprised of $1,091,158 for the ppp loans and $36,101 in accrued interest, for a total of $1,127,259.”